Top Reasons Why Bitcoin Price Lost Its $23K Resistance
The crypto market kicked off the year 2023 on a positive note and majority of the cryptocurrencies landed on a high trading area. However, now it looks like the market has taken a U-turn as most of the currencies including Bitcoin, Ethereum, XRP, Cardano, Solana and other large cap currencies have registered a loss. The Bitcoin price has shed nearly 1.5% in the last 24hrs while the lead altcoin, Ethereum, has lost its $1,600 level.
At the time of publication, Bitcoin is selling at $22,656 after a drop of 1.2% in the last 24hrs. Also Ethereum has lost 4.57% in the span of a day and is now trading at $1,553.
Why Is Bitcoin Price Down ?
The last three weeks of January have been exceptionally good for cryptocurrencies. Nevertheless, now as the flagship currency, Bitcoin gradually makes a downward movement which is considered to be highly unusual considering its last few days performance. This also points towards investors who have become less optimistic towards bitcoin’s price action.
It’s a known fact that Bitcoin and other large cap cryptocurrencies are highly correlated with tech stocks. Hence, this becomes one of the reasons for Bitcoin and other cryptocurrencies to register a loss today.
Secondly, the crypto market might be reacting to the upcoming US fourth-quarter gross domestic product (GDP) which is set to be released Thursday.
Thirdly, the market experts point towards the entry of hedge funds into short positions. Next, the volatility in the crypto market could be due to Microsoft’s cloud outage which has affected investors’ sentiment. Lastly, traders anticipating ease in the monetary policy in the coming days might have caused crypto market volatility.
However, next week’s Fed meeting is expected to give these cryptocurrencies a much required push if the inflation rate is decreasing.
Shiba Inu To Lose its Recent Gains; Has the SHIB Price Lost Control of the Bull Market?
Shiba INU bears appear to have again activated as the prices are falling apart for the past few hours. The price is experiencing extreme selling pressure due to which it has plunged by more than 6% in the past 24 hours and still counting. The RSI is heading south, the price rejected the crucial 50-day MA levels, and MACD displays an accumulated bearish volume while the cross-over is still distinct.Â
This may indicate the bearish trend may be continued for some more time which could drag the price lower to reach the support zone below $0.0000082. However, despite the bearish clouds prevailing over space, the current trade set-up appears to just trap the short traders as the price is closer to manifesting a notable upswing. But well before the bullish breakout, the price is closer to manifesting a notable pullback.Â
Supply on Exchanges Surge
The supply on exchanges denotes the percentage of the tokens stored in their wallets. This signifies the presence of liquidity in order to carry out the buy or sell trade. The supply has reached rock bottom levels which had created a liquidity crunch, and with an intensified demand, the price was set to inflate. However, the slight rise in the supply has eased the pressure mounting on the demand which may assist the bears to dominate over the crypto for some more time.Â
Whales Intensify Their Accumulation
Whales largely do not contribute towards the volatility of the asset which is much required for the price to rise. However, if the whales again start accumulating, it indicates the price may turn bullish in the near future but may remain under bearish captivity for now. As they usually accumulate the tokens in the bearish market.Â
Daily Active Address (DAA) Consolidates Around the Lows
The daily active address indicated the number of addresses interacting with the platform regardless of whether they want to carry out a buy trade, a sell trade, or just swap the tokens. An increase in the metrics indicates the high involvement and interest of the market participants over the network.
However, the DAA in the case of Shiba INU remains drowned, indicating the shift of focus of the market participants over the other assets. This may largely impact the price as the volatility may be slashed in the coming days.Â
MVRV-Z Score Heading Towards Lows
MVRV is an indicator that determines whether the asset is undervalued or overvalued, and Z-score enables you to compare the current price to its historical moving average price. It offers the fair value of the asset by comparing the market value with its realized value and determining if the prices are overvalued or undervalued. Presently, the values have declined to hover within the negative levels and hence indicating the price to be under a bearish influence.Â
Collectively, Shiba INU (SHIB) Price appears to remain under bearish pressure for an extended time frame, beyond which a suitable upswing may be framed. However, until then the short traders may place their bets and on liquidation, the SHIB price may be compelled to rebound and spike high.Â
FTX Task Force Launched, Will FTX Customers Get Their Lost Funds?
While the entire crypto space is awaiting justice in the FTX case, the company’s founder and former CEO Sam Bankman-Fried have pleaded not guilty to the charges of deceiving his investors. This statement was given before Manhattan federal court on January 3, 2023.
Banman-Fried has denied all the charges which accuse him of defrauding his FTX customers and using it for his real estate purchases, political donation, and much more. Following this, Judge Lewis A. Kaplan has now set a tentative trial date of October 2 which might be preponed or postponed a day or two. It’s also reported that due to the accusation of fraud and multiple financial offenses, SBF might face 115 yrs of imprisonment.
FTX Task Force To Recover FTX Customer Funds
Meanwhile, on the same day, January 3 the Manhattan US Attorney’s Office revealed a plan to form FTX Task Force. This Task Force will mainly focus on investigations and the charges that are currently faced by FTX. Here the Task Force will try to recover the victim’s assets from FTX.
At present, Sam Bankman-Fried is out on $250 million bail, but he is currently under house arrest at his parent’s place. It’s just not SBF, even FTX co-founder Gary Wang and Alameda Research’s former CEO Caroline Ellison is also facing charges.
On the other hand, as per the sources, the FTX Task Force will have lawyers from Money Laundering, Securities and Commodities Fraud, Public Corruption, and Transnational Criminal Enterprises departments. The Securities and Exchange Commission has reported that the customers have stated a loss of $8 billion after FTX and Alameda Research collapsed.
As mentioned earlier, Alameda Research which is SBF’s hedge fund had huge stakes in FTT tokens which is a native token of FTX. These staked FTT tokens were used to lend billions of loans.
This is How Terra Plans to Revive the Ecosystem, Will LUNC, LUNA & USTC Price Regain Lost Levels?
Terra Ecosystem has been closely monitored ever since the crypto markets collapsed due to the native tokens of the network. The fall was historical, which created a domino impact on the other platforms as well. More significantly, the impact continues to coil up as the investors still remain aloof and are not willing to go long on the tokens.Â
However, to gain back the confidence and the strength of the rally, Terra’s Governance Team made up of LUNC & LUNA has proposed a new expansion strategy. This strategy aims to restore the entire ecosystem after the tragic event.Â
The program is basically a revision of the Developer Mining Program & Developer Alignment Program which were initially defined during the launch of the Terra blockchain. The revision mainly aims to better align the incentives across the ecosystems & attract the developers. Along with this, the plan also focuses on onboarding users & promoting deep liquidity.Â
The main aspects of the revision are:
- The initial 100 million LUNA allocation will be now slashed to 95 million with 80% of this will be rewarded to the developers as mining rewards
- Secondly, the mining rewards will be dropped from 80 million LUNA to 20 million LUNA
- Additionally, 50 million LUNA will be reallocated as liquidity mining rewards to develop the decentralized exchanges on the Terra ecosystem
- Lastly, another 20 million LUNA would be distributed annually among the developers in form of grants & 5 million to be distributed to the community as an incentive for growth
While the TVL of LUNA has plunged heavily and so as the native tokens LUNA & LUNC. Moreover, the tokens forecast the possibilities of a continued descending trend over some time. Also, the recently launch 1.2% tax burn proposal which was widely implemented, failed to uplift the prices accordingly.Â
In such a case, it is unclear whether the revival plans will restore the ecosystem to its former glory.Â
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User Lost $40M Worth of BTC in Celsius Network Crisis
The post User Lost $40M Worth of BTC in Celsius Network Crisis appeared first on Coinpedia Fintech News
The recent breach of Celsius network users’ transactions revealed some interesting development days after the tragic incident occurred.
It is worth recalling that the troubled cryptocurrency lender Celsius disclosed the identities and transaction information of thousands of customers, who incurred massive losses. The document is 1,450 pages long and contains personal information on Celsius’ customers, such as wallet ID, type of tokens owned, and value. The top ten Celsius investors lost more than $200.6 million at the current currency rate, according to the statistics.
Jacob Benjamin Fite, a Celsius user went through a major loss due to the event. Fite’s major holding is Bitcoin (BTC) which represents 98% of his portfolio.